TEHRAN, Sept. 15 (Xinhua) -- Iran's Petropars company has signed a contract with Iran's Pars Oil and Gas Company (POGC) to develop the offshore Balal gas field in the Gulf, Financial Tribune reported on Sunday.
The contract, worth 440 million U.S. dollars, was inked in the presence of Iran's Oil Minister Bijan Namdar Zanganeh on Saturday.
Based on the contract, the project will produce 14 million cubic meters per day of sour gas in three years, according to the report.
The produced gas will be transferred to the offshore platform of Phase 12 of South Pars Gas Field and after processing, it will be piped to the onshore refinery via an undersea pipeline.
According to the contract, POGC, a subsidiary of the National Iranian Oil Company, will also carry out reservoir studies.
On Saturday, Zanganeh said that his country is making rapid headway in oil, gas and petrochemical industries despite U.S. sanctions.
